THE IMPACT OF THE NEW RURAL DEVELOPMENT PROGRAM ON RURAL HOUSEHOLDS' WELL-BEING IN VIETNAM

Abstract Rural development has played important role in the economic development strategy of Vietnam. With the aim at enhancing sustainably rural households’ income, Vietnam launched the National Target Program on New Rural Development (also called the New Rural Development Program) in 2010. This study devotes to evaluating the impact of the New Rural Development Program (NRDP) on rural households’ well-being in Vietnam. The data for empirical analysis in this study are collected from a structured questionnaire survey of 360 rural households conducted in Hau Giang and Vinh Long province, the Mekong river delta region of Vietnam. Using the propensity score matching (PSM) and difference-in-differences (DID) methods, we find that the NRDP has significantly positive impact on rural households’ well-being in Vietnam. Based on the empirical findings, it is concluded that there is merit in greater interest being taken in initiatives like the NRDP in Vietnam by policy makers in developing countries